According to Q1 results, the amount of services in the real estate segment has reached KZT 188.48 billion, up by 14.6% YoY.
Real estate services are most popular in Almaty City (38.8% of all Kazakhstan, KZT 73.16 billion, +24.3%) and the capital Astana (21%, KZT 39.59 billion, +24.9%). The greatest increase in demand for services in the sector was registered in Aktobe region up by 55.9% YoY, to 6.05 billion tenge. In the long-term dynamics, the volume of real estate services was steadily increasing until 2013, then the growth rate dropped in 2014 (just +9.1% YoY). Last year’s figures recorded a 6% growth against 2015.
The number of sales in June equaled 21,700, up by 7.8% MoM and by 26.2% YoY. The highest growth was registered as to the apartments of multiple dwelling buildings: +29.6%, to 14,300. Regarding individual houses, the number of transactions has increased to 7,400, by 20.5%. However, in the realtors’ opinion, there is not a sharp increase and the statistics are explained by the specifics of the counting methodology. That is to say that if a new large residential complex is placed into service, then all previously concluded preliminary contracts or equity participation agreements are immediately drawn up as sale or ownership transfer agreements, affecting the statistics. So, according to the members of the United Association of Kazakh Realtors, it is not the increasing number of secondary market transactions but the demand for primary housing and the accelerating commissioning of this housing that affect the growth rates. For instance, in June the number of applications for the purchase of housing in new buildings on Homsters.kz grew by 20.6% MoM and immediately by 47% YoY. The upward trend bespeaks the recovery of the market owing to the development of public housing programs: preferential mortgage loans at 10% interest rate within “Nurly Zher” program, purchase of housing within the programs of Housing Construction Savings Bank of Kazakhstan and the Kazakhstan Mortgage Company.
The average prices on the housing market continue to decline. For instance, in June the prices for new housing purchase decreased by 1.5% YoY, while the slight value drop for well-furnished secondary, ill-equipped and fashionable housing was 1.7%, 0.6% and 0.4% respectively. In contrast, rental prices are growing: +1.7% YoY. The number of registered real estate companies have grown by 0.3% YoY, to 17,300, following the results of June. Of these, operating companies are 11,700 (+0.1%), active ones are 8,500 (+2.6%). (Kazinform/Business World Magazine)
